HSBC Global Research has reduced its overweight in equities and cyclicals, cut oil to underweight, and added to carry as a prolonged sell-off is unlikely. The view has been firmly risk-on during the base-effect-driven reflation mania, but the macro and fundamental outlook has seen its peak now. The outlook for stimulus and liquidity hasn't deteriorated so significantly for the researchers to be outright bearish on risk assets. The researchers also think market-based inflation expectations should decline in the coming months and start to weigh on cyclical assets.